Paddy Power in speak with combine with Fan Duel

16 May 2018

Gambling firm Paddy Power Betfair has stated it is in talks over a merger in the US with dream sports website Fan Duel.

Talks centre around integrating its US operation with Fan Duel to develop a business to "to target the prospective US sports wagering market".

It comes as the American Supreme Court reversed 1992 legislation that prohibited sports betting in a lot of US states.

Fan Duel allows sports fans to gamble on dream sports leagues and contests.

Merger deserted

It uses dream sport video gaming around NFL American Football, MLB baseball, NBA basketball and NHL ice hockey. There are estimated to be around 30 million adult dream sports gamers in The United States and Canada.

Players pick which contest they wish to go into, construct dream sports teams that do not breach a fantasy wage cap, and participate in head-to-head or multi-player contests.

The company, which was founded in 2009, is based in New York and has about 400 staff members.

A proposition to combine with rivals Draft Kings was deserted last year, after being obstructed by the Federal Trade Commission on the premises that the combined firm would control a 90% market share.

Since the Supreme Court judgment on 14 May Draft Kings has signalled its intention to enter the sports gambling market.

Horseracing channel

The Dublin-based gaming firm currently has an US department, that includes the yohaig code TVG Network, a horseracing TV channel and online wagering network which is active in 35 states.

And in the state of New Jersey, the business has an online casino and a horse racing wagering exchange.

A merger with Fan Duel would give it access to countless potential sports betting fans.

Neil Wilson, chief expert at markets.com, stated wagering firms were already jockeying for position after the Supreme Court ruling.

"Fan Duel competing Draft Kings has currently said it will get in the sports wagering market and there is some sense that local incumbents may have the ability to gain significant market share before UK and European operators get an opportunity to mobilise their forces," he stated.